GTBank under fire: Protesters demand probe into alleged corruption, fraudulent practices

Protesters organized by the Global Integrity Crusade Network (GICN) gathered at the National Assembly in Abuja on Monday to demand a legislative probe into alleged “corruption, fraud, and financial irregularities” at Guaranty Trust Bank (GTB).

The group stated that the protest followed a press conference held in Abuja on Thursday, October 3, 2024. GICN claimed its protest aimed to inform Nigerians of the latest findings by its investigative team concerning GTB, which had previously been perceived as a healthy institution by unsuspecting customers and investors.

In a statement signed by Amb. Comr. Adebayo Lion Ogorry, Director of Publicity and Mobilization for GICN, and read at the entrance to the National Assembly, the group revealed that it had submitted reports to relevant agencies in Nigeria and abroad. The reports, based on an investigation, allege that under the leadership of Segun Julius Agbaje, GTB is involved in several illicit activities including: unsolicited account openings, declaration of fictitious profits, round-tripping, money laundering, terrorism financing, and using customers’ and investors’ funds to pay penalties in the United Kingdom.

The statement also highlighted a specific case involving a customer, referred to as Mr. E, who complained to the Financial Ombudsman Service in the UK. According to Mr. E, in March 2023, he fell victim to a scam and transferred money from his GTB account. While part of the money was recovered, GTB allegedly did not reimburse the remaining loss. Despite requests for clarification from GTB, the bank did not respond. In a ruling, the Ombudsman, Neil Bridge, stated that GTB should have been more vigilant in monitoring suspicious transactions and directed the bank to refund the remaining amount to Mr. E with 8% simple interest.

In Nigeria, the GICN noted that GTB was implicated in a report submitted by Jim Obazee and his team to President Bola Ahmed Tinubu in December 2023. The report accused GTB of unlawfully diverting funds from the Nigerian Electricity Market Stabilization Facility (NEMSF), intended for disbursement to participating banks. According to the External Auditor’s Notes to the Financial Statement of NESI Stabilization Strategy Limited, the fees were paid to banks based on their contributions to the NEMSF.

The GICN also alleged that GTB has been involved in diverting foreign currencies sent from intermediary banks in Germany, the UK, Switzerland, and Ghana. The group claimed that in many cases, GTB forms a syndicate to threaten the recipients of such funds, falsely accusing them of involvement in money laundering or internet fraud.

These practices, the GICN argued, have caused significant losses for investors hoping to return to Nigeria and contribute to the country’s development.

The GICN called on regulatory authorities, including the EFCC, National Assembly, CBN, NFIU, and others, to take immediate action against GTB to protect the bank’s customers and investors. The group warned that if these agencies fail to act, it will file Mandamus proceedings in the Federal High Court to compel them to fulfill their legal responsibilities.

Additionally, GICN expressed support for bloggers Precious Eze, Olawale Rotimi, Rowland Olonishu, and Seun Odunlami, who were recently remanded in Ikoyi Prison by Justice Ayokunle Faji of the Federal High Court in Lagos. The bloggers face charges of cyberstalking and disseminating false information, accusations the GICN dismissed as baseless and retaliatory for their criticism of GTB.

The GICN condemned what it described as attempts by GTB CEO Segun Julius Agbaje to silence civil society and the media. The organization declared its commitment to fighting corruption, stating, “For us, it is no retreat, no surrender.”